LONDON (Alliance News) - Digital media and technology firm Milestone Group PLC on Wednesday said it is planning to launch a new share placing as it has yet to receive the proceeds from the fundraising launched in October.
At that time, the company said it had raised GBP1.4 million via a share placing to back the expansion of its operations. But in November, Milestone said receipt of GBP1.3 million of this funding remained outstanding.
These shares had been subscribed for by an investor sourced by Milestone, with the other GBP135,000 raised by Milestone's broker.
On Wednesday, Milestone said that GBP135,000 has been returned to those investors, and said it intends to pursue the delinquent investor for the other GBP1.3 million, adding it has received a legal opinion that the shares issued to this investor were validly allotted and issued.
Milestone said is cash resources are tight, and it is managing its working capital carefully but it will have to raise funds. It intends to launch a new placing in the near-term but said this is likely to be conducted at a lower price than the 1.50 pence price at which the shares were issued in October.
Milestone shares were up 2.7% at 0.488p on Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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